Microsoft loses $100M from Zune

The blogosphere is buzzing with rumors that Microsoft is slowly going out of the mp3 market and abandoning it’s zune device and marketplace. This came after news of Microsoft’s Form 10-Q SEC filing which according to the filing, “Zune platform revenue decreased $100 million or 54% reflecting a decrease in device sales.”

Even Intel, the world’s biggest computer chip maker, closed it’s Philippine plant (Malaysia and USA as well) leaving 1,800 jobless. So, maybe it’s the effect of recession all around the globe that's affecting Microsoft and every other tech company out there.

Do you think that Microsoft will abandon the Zune anytime zoon? I hope not!

via Engadget


Before placing your comments, please remember to stay on topic. Thanks

  1. the drastic decline in Zune sales is probably a direct result of the device's freeze-up from New Year's Eve, a month ago

  2. Although the Zune 30gb freeze could be seen as a potential threat, I don't think it is the primary reason sales were down. Plain and simple, people are tools. they see Ipod everywhere and can't help but be engulfed. They don't realize there is a better product out there. Microsoft needs to realize this devices potential, and they need to make it easier to port to external devices. Make it so that you network practically seems naked without a Zune. As a retailer, I am aware of what people flock towards in Ipods. You have the cheap consumer who buys a shuffle for a simple method of portable music. The second extreme is the group that fawns all over the ipod touch because its trendy. Microsoft needs to learn how to address these consumers, and I think the production of ZPH's concept Zune Surface would be a good step in the right direction.

  3. I don't think the zune bug is main reason of declining sales. I can cite 4 issues that may have caused the huge loss.

    1. Economy - even the giant Circuit City filed Chapter 11

    2. Poor Marketing - the Zune is not being advertised and marketed the way it should be. People don't get the features and advantages over the leading mp3 player.

    3. No International Revenue - profits merely come from US and Canada.

    4. Less Choices - Zune for a while offered only zune30, added zune flash models but still lacks zune touch device and entry level "cheap" zune player.

Previous Post Next Post

Recent in Technology